Futures contract

Futures contract,

Definition of Futures contract:

  1. Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. Here, the buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.

  2. An agreement traded on an organized exchange to buy or sell assets, especially commodities or shares, at a fixed price but to be delivered and paid for later.

  3. Binding contract made on the trading floor of a futures exchange to buy or sell a commodity, financial instrument, or security, on a stated future date at a specified price. These agreements are standardized in terms of quantity, quality, delivery location, and delivery time for each item, and do not normally result in an actual delivery but are settled (traded out) through counter-contracts. Used in hedging, futures contracts help mitigate the risk of wild price fluctuations. In contrast to an option (right to buy or sell an item that lapses if not exercised) a futures contract is an obligation fulfilled only by the completion of the transaction.

  4. A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange. The buyer of a futures contract is taking on the obligation to buy and receive the underlying asset when the futures contract expires. The seller of the futures contract is taking on the obligation to provide and deliver the underlying asset at the expiration date. .

How to use Futures contract in a sentence?

  1. Futures contracts are financial derivatives that oblige the buyer to purchase some underlying asset (or the seller to sell that asset) at a predetermined future price and date.
  2. The futures contract was an outstanding deal that was made by our investment manager as we were in a good position in the market.
  3. That commodity company is well known for their agents ability to quickly close futures contract s when trading becomes fast on the trading floor.
  4. A futures contract would be far more risky as an investment than an outright purchase of stocks or mutual funds.
  5. Futures are also often used to hedge the price movement of the underlying asset to help prevent losses from unfavorable price change.
  6. A futures contract allows an investor to speculate on the direction of a security, commodity, or a financial instrument, either long or short, using leverage.
  7. The existence of futures contracts allows sellers or buyers to hedge against risk.

Meaning of Futures contract & Futures contract Definition

Futures Contract,

What Does Futures Contract Mean?

  1. The seller agreed to provide the buyer with a certain number of products at a later date at a mutually agreed price.

  2. A simple definition of Futures Contract is: A futures contract is a legal contract to buy or sell a particular product or security in the future. Future contracts are standardized in terms of quality and quantity to facilitate trading in the futures market. The buyer of a futures contract assumes the responsibility to purchase and receive the underlying asset upon termination of the futures contract. The futures contract seller assumes responsibility for the supply and delivery of the underlying asset on the maturity date.

    • A futures agreement is a financial source that requires the buyer to buy the underlying asset (or the seller of the asset) at a predetermined price and date in the future.
    • Futures contracts provide an opportunity for investors to speculate on the direction of a security, commodity or financial instrument, whether they are bought or sold.
    • Futures contracts are also often used to protect the value of the underlying asset in order to avoid losses due to inappropriate price changes.

  3. In futures trading, buyers and sellers agree to trade a particular asset at a certain price for a certain amount.

  4. Futures Contract means, An agreement between a buyer and a seller to exchange certain goods (such as bonds or goods) at a future price agreed upon in a common standard agreement for all participants in the foreign exchange market. Organized term.

Literal Meanings of Futures Contract


Meanings of Futures:
  1. The time after speaking or writing is considered imminent.

  2. Agreements of assets (including goods or shares) that are purchased at a fixed price, but are then supplied and paid for

  3. At some point in the future, it may or may not exist.

Sentences of Futures
  1. We plan to marry Segera soon

  2. This includes buying and selling futures or options on stocks, bonds or currencies.

Synonyms of Futures

coming, subsequent, time to come, to come, time ahead, ensuing, following, upcoming, succeeding, later


Meanings of Contract:
  1. Make formal and legally binding agreements.

  2. Catch or Prepare (Disease or Infectious Agent)

  3. Your debt

  4. A written or oral agreement, specifically a contract of employment, purchase or lease, intended to be legally binding.

Sentences of Contract
  1. When it cools, the glass contracts

  2. Local authorities will employ various agencies to provide services

  3. Three people infected with the deadly virus

  4. The resulting debt is 3,300

Synonyms of Contract

settlement, engage, be stricken with, be taken ill with, pledge, understanding, catch, compact, shrink, acquire, promise, undertake, succumb to, bond, become liable to pay, develop, get, get smaller, covenant, commitment, commit oneself, pick up, undertaking, fall into, fall ill with, become infected with, become smaller, arrangement, come down with